Co-Op Bank New zealand

[percy]

I have been a customer of PSIS/ Co-Operative bank since about 1968. My son, who is an exec. in Bank Of America, London, has his NZ account there. I am more than happy with them. My share dealings go through BNZ only for convenience of a full bank before co-op bank changed over.

I know Coop customers are "more than happy" with them.
What does interest me is if should things should, in the unlikely event,go wrong again,what guarantee do depositor's have?
As the model is coop I doubt it could survive another "black swan" event.
Can trustees of a trust deposit trust funds with them?.
Are lawyers allowed to deposit funds with them?.
Would a trustee be liable "as a prudent" person for not checking Coop guarantee?.
A listed bank does have shareholders to fund a recap if needed.I just do not see PSIS/Coop members being in a position to fund a recap, as they would have lost their deposits at at the Coop bank.
I know you and winner69 have shares and capital,yet I cann't see most Coop members being able/willing to fund a capital raising.Too late to shut the gate after the horse has bolted.
Would you run the question of Coop guarantee past you son.

[winner69]

Coop banks / credit unions / building societies have been around for zonks. In Britain the likes of Halifax Building Society were the backbone of the countries home lending market for over 150 years - gathering deposits from small savers and lending the proceeds to house buyers. The good old fashioned way. They survived world wars, periods of high interest rates, periods of falling house prices, credit crunches and all sorts of things because they had a simple business model.

Sadly a lot of these organisations don't exist anymore - they demutualised or whatever the word is and turned depositor owners into shareholders and tried to be a real bank. They forgot about what the business was all about and started gambling with shareholders monies to extract higher and higher returns for demanding shareholders (who were not the original depositors).

So talking of black swan events etc and the need for recap is not really relevant to coops/building societies etc. Their 'shareholders' do not demand excessive returns which lead to 'black swan' events.

So as long as Coop Bank sticks to the old fashioned way of doing things but in the modern world they should be OK. Look after the customers (depositor/shareholders) but offering them the services they need and acting prudently is the name of the game for them.

Like craic and his son I don't see Coop Bank as more risky than the likes of Heartland ... maybe less risky.

One thing I know that if the **** really hit the fan in the world I'd rather be with Coop than likes of HNZ. In HNZ case the likely outcome of a disaster for them is recap from a big player leaving existing shareholders out in the cold.

Nothing is safe eh Percy. I wouldn't put all my deposit money in them but for the reasons I outlined earlier I am more than happy to be a depositor with them

I think we will continue to disagree though Percy .... your glasses are more rose tinted than mine I fear

[percy]

Although I agree with a lot of what you say, it must be rememdered PSIS has been in big trouble.
I think govt bailled them out.This is no longer an option.
Hopefully neither Coop or HNZ will ever hit the wall,however it is reassuring to know where you stand.
I think Coop depositors would be in the far que.!
I think facts make my vision clearer.

[winner69]

the thing that far que'd PSIS is that they were into retailing in a biggish way as well .... learnt that lesson they did but like Smiths City the statutory Manager and Receivers got them over that hurdle

[craic]

I was a member then and they had a very broad retail base - I bought an electric sawbench, most of my household crockery and manchester from them - and they were big in home loans. When they looked to have overstepped the mark, Muldoon declared that he did not want to see so many public servants lose their savings and he appointed a statutory manager. Savings were frozen for a matter of months, then everything went back to normal. Remember, the Mighty Bank of NZ also came close to the precipice. All of this happened in difficult times with massive inflation and the rest going on.

[percy]

The old saying of "after all said and done, there is more said than done" is very true.
We are no nearer to answering the question."Who or whom would the Coop Bank turn to should they have troubles and need to recap."?
Can a trustee /lawyer have a trust a/c with Coop Bank?

[winner69]

The old saying of "after all said and done, there is more said than done" is very true.
We are no nearer to answering the question."Who or whom would the Coop Bank turn to should they have troubles and need to recap."?
Can a trustee /lawyer have a trust a/c with Coop Bank?

Maybe you can find out for us if it so important to you

I am not that interested in that sort of stuff.

Its a BANK, got a banking licence and good people run it so they must be OK

[Marilyn Munroe]

The safety of the Co-op bank depends on the sticking to what the Americans call 3-4-5 banking.

Borrow at 3%, lend at 4%, be on the golf course by 5.

In other words safe but boring. They should leave the "Master of the Universe" stuff to others.

Boop boop de do
Marilyn

[percy]

Not too important to me as I have no risk there, as I don't bank with them.
And to think I thought you were our Coop expert.!! You have let yourself and us down>>!!!From your posts on HNZ thread, I thought you were very interested,particulary staff incentive schemes,and equity ratios.
I suppose South Canterbury Finance investors felt the same,great guy,great company,great record,[great loses,].
Yes, you can take comfort that they are a BANK,but there were banks in Cryprus and US that had people paid a bit more attention to equity and other ratios they may not have lost their savings.

[winner69]

http://www.interest.co.nz/personal-f...based-how-much